Russia signed a preliminary $2.27 billion (2 billion euro)
agreement on building a pipeline through
Greece, according
to
Bloomberg.

The section of
the Turkish Stream in Greece will have annual capacity of 47
billion cubic meters.

Construction
will start in 2016 and is expected to be completed set for
2019, according to Russian Energy Minister Alexander
Novak.

Russia's
development bank will own 50% of the link and will do all of the
financing, and Greece will own the rest. Russia's Gazprom will not
hold a stake in the section crossing Greece, according to
Novak.

“The pipeline
is not against anyone in Europe or the world,” Greek Energy
Minister Panagiotis Lafazanis in St. Petersburg. “It is here to
serve people, peace and stability. Energy can bring people
together and not feed Cold War situations.”

The Turkish Steam, a Gazprom project, was announced in
January after the company abandoned the $45 billion South Stream
project in December. The project is expected to begin somewhere
between June-July 2015.

Map of Europe showing
planned gas pipelines in the region. Includes proposed Gazprom
pipeline to Europe through Turkey.Reuters

The key geopolitical takeaway regarding both projects
is that they’re supposed to bypass crumbling Ukraine — which
would allow Russia to both maintain its gas
leverage over the EU and hurt
Kiev.

“To help Gazprom reach Central European markets, Russia has
advocated the construction of a pipeline that would run from
Greece to Macedonia, Serbia and Hungary,” analysts from
Texas-based consulting firm Stratfor wrote in a report, according
to Bloomberg.

“These four countries are at the center of a
Russian diplomatic offensive."

Although some analysts have expressed
doubts over the projects, "the Russians seem
determined to let their transit contract with Ukraine expire by
2019 in favor of the alternative
route under the Black Sea. Gazprom has
already laid 472 kilometers (293 miles) of
the so-called Southern Corridor, the onshore part of the pipeline
in Russia, in anticipation of the deal," according to
Bloomberg.

Greece has been cozying up to Russia the last few months. Some
analysts noted that a potential gas deal was a major factor
behind the schmoozing.

"[A] new long-term gas deal to provide energy security for the
fragile Greek economy and give the left-wing Syriza party an
early win (at least in the eyes of the Greek electorate,"
Business Insider's Tomas Hirst wrote
back in January after Greece took a stance against
sanctions on Russia.